| | DECEMBER 20208ELECTRIC VEHICLES ­ IS INDIA PREPARED TO SHIFT GEARS?By Alind Saxena, Chief Business Officer, L&T Technology Services LimitedInnovate or PerishThe automotive industry is currently witnessing many technology-driven trends that are shaping large-scale disruption in the area of transportation. Electrification is a key one among them and innovation is undoubtedly the main driver shaping the growth of the global market for electric vehicles (EV). In a carbon-conscious world battling environmental pollution and the effects of climate change, together with the spiraling prices of oil, the gradual shift to EVs is inevitable. The earlier the auto industry realizes this and aligns itself to this reality, the better it will be able to reap the benefits of electrification.In fact, Electric vehicles came into being over 100 years ago, tasted early success at the turn of the 20th century and then faced a rapid decline, unable to keep pace with fast-evolving gasoline-powered vehicles, ultimately leading to its virtual disappearance in the Thirties. Sporadic attempts were made through the following decades to revive the technology, with a few notable examples like the Henney Kilowatt, manufactured by The Henney Motor Company in 1959-1960 ­ but it failed to elicit an enthusiastic response from the public and sales were abysmally low. It was with the emergence of Tesla as a major player and Elon Musk's avowed mission "to accelerate the world's transition to sustainable energy", that the global auto industry started to change rapidly. The floodgates of global interest in and adoption of the EV by the auto industry seemed to have opened with the wheels being set in motion by Tesla. An entire collaborative ecosystem has sprung up since, comprising auto manufacturers, battery manufacturers and components suppliers.India has recently taken some small but significant steps aimed at accelerating the adoption of EVs. These include the announcement of a slew of tax rebates to customers of EVs and to manufacturers of EV components in the 2019 budget. The NITI Aayog has put forth a policy proposal for transition to EVs within the next few years, especially for the two and three-wheeler sectors (2023 for three wheelers and 2025 for two wheelers). These are essential first steps, but more needs to be done to reach a stage where EVs become a viable choice for many. Let's examine what the next steps should be.Continued Government Action NeededIncentives and subsidies by governments across the world have been a key factor propelling the growth of EVs in the last couple of decades. China, currently the world's largest EV market, has mandated a quota for EV production for all auto manufacturers. It has also imposed IN MY OPINION
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